AI crucial for optimising energy efficiency and sustainability

There are many AI use cases across the entire energy value chain from time series forecasting, market analysis, optimised bid selection, anomaly detection, failure prevention and consumption pattern recognitions. AI technology plays a crucial role in minimising greenhouse gas emissions and addressing climate change. Systems powered by AI can pinpoint the most effective approaches for utilising captured carbon, model and predict climate change and weather patterns, and help design greener smarter cities and more energy-efficient buildings.

Whilst the transformative force of AI in the energy and utilities sector is clear, as with any disruptive technology, there are a wide range of regulatory and legal implications to consider. For example, the use of AI involves the collection and processing of large amounts of data, raising concerns regarding data privacy and security, and so a robust data strategy will be key. This is particularly important where data involves end consumers of energy in the form of personal data.

Another important legal consideration is the protection of critical systems from cyber-attacks. This is the subject of the EU Network Code on Cybersecurity, due to enter into force later this year. Possible exploitation routes include the AI that operates the network. Companies in the Energy and Utilities sector using open and public generative AI systems also need to consider the confidentiality issues. 

Other impacts to the sector include the evolution of the regulatory framework for the use of AI, including specific guidance from energy regulators. The implementation of AI also gives rise to environmental, social and governance risks, including…